Where will you live if you need some type of assistance? Reviewing the options can be overwhelming. Before making a decision, have a clear understanding of the services provided as well as the financial impact.
Are you or a loved one looking for a living option that will help reduce the burden of household duties and ultimately aid in your wellbeing as you age? If so, use the following information as a guide to what different living facilities have to offer and the related costs.
Home Care - Aging in Place
If possible, most Americans would prefer to receive care in their home. In order to be safe at home as residents age, it may be necessary to make modifications to the house, such as eliminating stairs, widening doorways for walkers and/or wheelchairs, or making bathroom facilities more accommodating. In addition, knowledge regarding local home care agencies and/or community services that can meet care needs will be necessary.Appropriateness: For those who are currently independent, but possibly require minor assistance with one or two activities of daily living (bathing, cooking, dressing, transferring, etc.) or medical treatments. Staying at home would be less practical or affordable for those that require more skilled care.
Costs: The median cost of home care is $25 per hour. Home care services can range from once per week to 24 hours a day, depending on the needs of the individual.
Assisted Living Communities
These communities are available for those who may need some assistance with daily living, but do not require skilled care. Residents’ needs may include help with medications, meal preparation, housekeeping, etc. Assisted living communities offer private apartments, usually including a kitchenette. Staff is available daily for added safety and most of the communities offer transportation, social activities, exercise facilities, etc. Some also offer a memory care unit.Appropriateness: For seniors who are relatively healthy, but unable to perform all activities of daily living.
Costs: Entrance fees/deposits are often required and will vary by community. A flat rate would be charged for basic services (meals and rent); additional fees would be charged for special services. In 2020, the average cost of a one-bedroom apartment was $4,300 per month ($51,600 annually).
Nursing Homes
Nursing homes are available for seniors who require 24-hour monitoring and medical assistance. Skilled medical attention is available on site (physical therapists and physicians), as well as social activities and dining services.Appropriateness: For those that suffer from severe or debilitating physical or cognitive disability and unable to care for themselves.
Costs: The average cost of a nursing home facility is $8,821 per month ($105,852 per year).
Memory Care Facilities
Memory care is often provided in a separate wing of assisted living or nursing home facilities. The fully staffed and monitored facility provides intensive, long-term medical care to residents with serious health and dementia conditions. High security is in place to prevent residents from wandering off and becoming lost (a common symptom of Alzheimer’s disease or dementia).Appropriateness: For those that suffer from Alzheimer’s disease or dementia and require 24-hour supervised care.
Costs: In 2014, the National average cost of memory care was $5,000 per month ($60,000 annually). The cost varies by community and could range between $2,000 and $7,000 per month depending on local cost of living and availability ($24,000 to $84,000 annually).
Continuing Care Retirement Communities (CCRC)
Appropriateness: Those who are independent and wish to live in a community with others who share the same life circumstances; but also want to stay in the same place as they continue to age and require care in their later years.
Costs: CCRCs typically require a “buy-in” to the community that can be similar to the cost of a median priced home ($100,000 to $300,000). There is also a monthly fee that can range between $1,000 and $10,000, depending on the stage of care.
Summary
Determining the appropriate housing options for later years for yourself or a loved one can be emotionally and financially trying. Developing a plan early will help make this life transition more enjoyable and easier on you and your family. Price averages provided by Genworth.com.